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(Image Source: Whitegadget) BY KATIE BRENNAN
A new report by the
Wall Street Journal says Barnes and Noble will close 30 percent of its stores in the
next decade. Bloomberg’s Scarlet Fu explains, the internet is to blame..
“The chain
reported an almost 11 percent drop in sales during the holiday shopping season. Tom and
Sarah, another victim of amazon.com.”
That may be true, but Conan O’Brien points out
an important discrepancy between brick and mortar shops and amazon.com.
“CEO of
Barnes & Noble said that because of the internet they're being forced to close up to 1/3 of
their stores. Yeah. And he said good luck using the bathroom at amazon.com. That’s
a true story.”
In all seriousness, the company’s CEO told the Wall Street Journal
he expects the chain to close about 20 stores a year over the next decade, and operate only
450 stores by the end of the period. The Journal notes, this isn’t the first rough spot on
the booksellers record. “From humble beginnings to a bookselling
behemoth, Barnes & Noble has seen ups and downs over the decades as it tried to straddle
the world of paper books and e-books.”
HLN’s Jennifer Westhoven has an idea of how the
chain can combat technology — target those who don’t use it.
“People buy books
online or buy digital books. Hey Bob, I don’t know about you but I’ve noticed their kids
section has gotten a lot bigger, i bet because kids still get real books not digital books.
Yeah, that’s the one. But NBC News heard from the chain’s spokeswoman,
who said the Journal article was misleading and the rate of store closures hasn’t actually
changed.
"Barnes & Noble has not adjusted its store closing plan whatsoever. The Wall
Street Journal article today implies that our rate of store closures has changed. We
have historically closed approximately 15 stores per year for the last 10 years. Of
that number some of the stores are unprofitable while others are relocations to better properties."
The
Dallas Business Journal reports, Barnes and Noble isn’t the first retailer to suffer
from showrooming, or examining an item in a brick and mortar retail store, just to purchase
it online later at a lower price.
“Other big box retailers, such as Best Buy and Borders,
have been facing similar issues. Over the past few years, customers have begun using
these retailers as showrooms, but more and more turn to the web to make their purchase.